Summary
Trane Technologies plc (TT), formerly known as Ingersoll-Rand plc, reported its third-quarter 2013 financial results. For the three months ended September 30, 2013, the company generated net revenues of $3.75 billion, a 4.4% increase compared to the prior year, driven by volume and pricing improvements across most segments, particularly Climate Solutions, Residential Solutions, and Industrial Technologies. Net earnings attributable to Ingersoll-Rand plc were $165.9 million, or $0.56 per diluted share, a decrease from $321.6 million, or $1.03 per diluted share, in the same period last year. This decline was significantly impacted by a $111.4 million non-cash goodwill impairment charge in the Security Technologies segment and increased investment and spin-off related expenses. For the nine months ended September 30, 2013, net revenues grew 2.2% to $10.79 billion. Net earnings attributable to Ingersoll-Rand plc decreased to $571.1 million, or $1.91 per diluted share, from $783.0 million, or $2.50 per diluted share, in the prior year. The company continues to focus on operational excellence and productivity programs. A major ongoing development is the planned spin-off of its commercial and residential security businesses into a new entity, Allegion plc, expected to be completed by year-end 2013. The company also announced an increase in its quarterly dividend and continued its share repurchase program.
Financial Highlights
50 data points| Revenue | $3.21B |
| Cost of Revenue | $2.22B |
| Gross Profit | $996.50M |
| SG&A Expenses | $617.00M |
| Operating Income | $379.50M |
| Interest Expense | $102.80M |
| Net Income | $165.90M |
| EPS (Basic) | $0.57 |
| EPS (Diluted) | $0.56 |
| Shares Outstanding (Basic) | 291.60M |
| Shares Outstanding (Diluted) | 295.50M |
Key Highlights
- 1Net revenues increased by 4.4% to $3.75 billion for the third quarter of 2013, driven by volume and pricing.
- 2Net earnings attributable to Ingersoll-Rand plc decreased to $165.9 million in Q3 2013 from $321.6 million in Q3 2012.
- 3A significant $111.4 million non-cash goodwill impairment charge was recorded in the Security Technologies segment during the quarter.
- 4The company is planning to spin off its commercial and residential security businesses into a new company, Allegion plc, expected by year-end 2013.
- 5Diluted earnings per share from continuing operations were $0.57 in Q3 2013, down from $1.07 in Q3 2012.
- 6Total debt increased to $3.53 billion as of September 30, 2013, from $3.23 billion as of December 31, 2012, reflecting increased long-term debt.
- 7The company repurchased $795.2 million of its shares during the first nine months of 2013 under a new $2.0 billion share repurchase program.